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Case studies in business ethics and corporate governance
Ford pinto sale ethical issues
Business ethics case study 3 pages
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A Brief Introduction on the Ford Case
When a decision is made in a business organization, the internal stakeholders, the organization, and the external stakeholders are either affected positively and negatively. In "a who-why situation", two important questions are asked. The first question is who does the decision affect? The second question raised is how can the decision made, made to be ethical. In this case, Ford decided not to repair the defective fuel tank that posed a great danger to the people driving or riding in the Pinto (Leggett, 1999). In this analysis, if the fuel tank was not repaired and an explosion occurred in case the Pinto was involved in a collision, the organization would have observed losses and the shareholders. Other people who would be affected if the fuel explodes will be the customers who ride the Ford Pinto vehicles. The
The first step that Ford would have undertaken was to ask the cars back and redesign the faulty fuel tanks and ensure that the new fuel tanks did not pose any danger to the customers or other people (Hartley, 2012). The second action was to make the matter publicly so as to ensure that the drivers could be aware of the danger posed to them and take action to prevent the danger from occurring.
References
Hartley, C. (2012). Ford pinto: An ethical analysis. Retrieved February 17, 2017, from http://the-business-scholar.blogspot.com/2014/06/ford-pinto-ethical-analysis.html
Leggett, C. (1999). The Ford Pinto Case: The Valuation of Life As It Applies To the Negligence-Efficiency Argument. Retrieved February 17, 2017, from http://users.wfu.edu/palmitar/Law%26Valuation/Papers/1999/Leggett-pinto.html
Svensson, G., & Wood, G. (2003). The dynamics of business ethics: a function of time and culture-cases and models. Management Decision, 41(4),
Trevino, L. K., & Nelson, K. A. (2011). Managing business ethics: Straight talk about how to do it right. New York: John Wiley.
Greed is the root to evil or at least the motivation behind some corporations making a good, ethical decision. The Ford Motor Company fell into a trap of greed that would cost many human lives. Before the disaster of the Pinto Fires, Ford had a reputation as being the safety pioneer in the automobile industry with additions such as the seat belts. However, as the invention of small cars began to take emerge Ford began to loose market shares to the foreign market. Ford had to do something and quick.
informed of the options, and was given a realistic appraisal of the risks. All reasonable
When we consider the case of the Ford Pinto, and its relative controversy, through the varied scope of ethical viewpoints, the results might surprise us. From a personal standpoint, as a consumer, the idea of selling a vehicle to the masses with such a potentially devastating flaw is completely unethical. When we consider the case from other directions and other ethical viewpoints, however, it makes it clear that often ethics are a matter of perspective and philosophy. It’s also clear that there are cases where more information will muddy the waters, rather than clear them.
Trevino, L., & Nelson, K. (2011). Managing business ethics - straight talk about how to
Verschoor, C. C. (2012). New survey of workplace ethics shows surprising results. Strategic Finance, 93(10), 13-15. Retrieved from http://eds.a.ebscohost.com/eds/pdfviewer/pdfviewer?vid=12&sid=dac69b8f-b6d7-4136-8b8f-5d852423bdf6%40sessionmgr4005&hid=4103
For this paper Washington Mutual has been selected to show how the ethical decision making process can be achieve. When it comes to business ethics in the workplace Washington Mutual has designed what can be considered a well balanced workplace with behaviors that are aligned with their moral values and business ethics. Business ethics are sometimes depicted as resolving conflicts where one option can appear to be the correct choice. There are many different ethical dilemmas that are faced by managers and leaders everyday that are highly complex and have no clear choice or guidelines to assist in making the choices for resolution. There are times when an employee has to decide whether or not to cheat, lie, steal, or break their contract. These ethical decisions are real-life situations where they are forced to make on a daily basis. This is why it is ultimately important that all employee know the six steps to ethical decision making that the company uses.
This Coca Cola malfunction incident demonstrates that if attention is not paid to the ethical operation or the company it could challenge and threaten a company’s short and long term performance. This could have long lasting affects on the companies operations and requires strategic decisions to restore company’s image in the eyes of the customers. Gaining the trust of customers takes long time but it is broken with one small incident.
The training facility that Giffels firm was contracted to do civil engineering work for had recently switched from using jet fuel to liquid propane to prevent soil contamination. While this was a solution to environmental concerns it created new problems that Giffels found to be unaddressed with the lack of a design analysis for any safety systems.
In today’s fast paced business world many managers face tough decisions when walking the thin line between what’s legal and what’s socially unacceptable. It is becoming more and more important for organisations to consider many more factors, especially ethically, other than maximising profits in order to be more competitive or even survive in today’s business arena. The first part of this essay will discuss managerial ethics[1] and the relevant concepts and theories that affect ethical decision making, such as the Utilitarian, Individualism, Moral rights approach theories, the social responsibility of organisations to stakeholders and their responses to social demands, with specific reference to a case study presenting an ethical dilemma[2], where Mobil halts product sales to a garage, forcing the garage owner to stop selling solvents to young people. The second section of this essay will focus on advice that should be given to any manager in a similar position to the garage owner with relevance to the organisational strategic management, the corporate objective and the evaluation of corporate social performance by measuring economic, legal, ethical and discretionary responsibilities. It will address whom to think of as stakeholders and why the different aspect could cost more than a manager or an organisation could have imagined.
Stead, W. E., Worrell, D. L., & Stead, J. G. (1990). An integrative model for understanding and managing ethical behavior in business organizations. Journal of Business Ethics, 9(3), 233-242. Doi: 10.1007/BF00382649
Toyota issues in automotive industry resulted from a lack of moral and ethical obligations to loyal customers. In fact, people encounter ethics at one time or another. A business expectation is to act in manner upholding society values. According to authors Trevino and Nelson, (2004) states, “a set of moral principals or values, or the principals, norm, and standards of conduct governing a group or individual.” On the other hand, three ethical criteria determined in this discussion like obligation, moral ideas, and consequences which this article highlights an ethical dilemma with automobiles makers.
It seems obvious that large corporations have a tendency to ignore the negative effects of their actions in favor of profit. This example, although sensationalized, still says to me that with power comes responsibility. It affirmed my belief that a corporation’s goal cannot be just to provide profit to shareholders, but there must also be an element of social responsibility.
Nearly three decades ago, the Union Carbide pesticide plant in Bhopal India had a devastated tragedy. The toxic chemical and methyl isocyanate gas leak from the plant killed thousands of civilians who were sleeping and injured hundreds of thousands of people in the nearby neighborhood. For those who survived from this catastrophic incident had injuries ranging from blindness to suffering burns of the skins. The cause of this accident was due to the lack of safety standards and the decision making of Management of Union Carbide in the U.S and management in India in which it played a huge role on how this incident unfold and the many lives that were affected by this horrific accident. The Union Carbide manager in India’s overlooked at safety issues that could have clued them to the problem that needed to be resolved. And if management had a high priority for the safety of their employee’s well-being instead of profit, this situation could have been avoided. After the incident, it was a matter of who was responsible and who will compensate for the injured victims.